I invested in Fannie preferreds but sometimes dabble in commons.
Was surprised to see Freddie have a minuscule draw on the back of a $1B+ derivatives loss. Am less hopeful of an upside surprise for Fannie in Q1. Freddie uses a different "hedge accounting" method than Fannie so they could still do it.
Fannie will need to have $1B derivatives gain and only $4B added in loan loss reserves, or any combo where the two add up to only a negative $3B, to avoid another draw in Q1.